Revised PPAs with wind power plants expected in next two weeks

ISLAMABAD: The task force on power currently in talks with wind power plants (WPPs) is likely to come up with revised power purchase agreements (PPA) in the next two weeks as has been done with IPPs and government power plants. The government has already revised the power purchase agreements with IPPs and government power plants (GPPs).

“We are on a positive track in talks and hope to seal the deal with WPPs, though talks were tough and took time as there were some hiccups mainly because of the issues pinpointed by lenders of the projects,” a senior official of the Power Division, who is also a part of the negotiations with WPPs, told The News.

“Their debt payment tenure stands for 3-4 years and the government functionaries want lenders to enhance the debt payment tenure. We hope to get relief of Re0.13 per unit.”

The government’s task force, which is in talks with WPPs, comprises Power Minister Sardar Awais Khan Leghari, Adviser to the Prime Minister on Privatisation (formerly Special Assistant on Power) Muhammad Ali, National Coordinator Lt-Gen Zafar Iqbal, and representatives from CPPA-G, PPIB, SECP, and Nepra.

“The talks witnessed many stalemates and opposition from lenders of the projects earlier but when they were asked to face the forensic audit, they agreed to initiate talks. However, the talks are very tough but authorities want the revised contracts in the supreme interest of the country. We are heading towards an amicable solution through a transparent manner and may come up with the revised PPAs in the next two weeks.”

Pakistan has 36 operational wind power projects with a cumulative capacity of 1,845.475MW. These projects are primarily located in the Gharo-Jhimpir wind corridor in Sindh province. However, despite this installed capacity, wind power’s contribution to the national energy mix is limited due to transmission constraints and operational challenges.

Out of 36, there are five WPPs installed under CPEC umbrella.